{"id":38012,"date":"2024-03-31T12:46:52","date_gmt":"2024-03-31T16:46:52","guid":{"rendered":"https:\/\/usa.businessupturn.com\/?p=38012"},"modified":"2024-03-31T12:46:52","modified_gmt":"2024-03-31T16:46:52","slug":"kevin-oleary-eyes-massive-discount-in-potential-tiktok-acquisition-amid-regulatory-pressure","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/kevin-oleary-eyes-massive-discount-in-potential-tiktok-acquisition-amid-regulatory-pressure\/38012\/","title":{"rendered":"Kevin O\u2019Leary Eyes Massive Discount in Potential TikTok Acquisition Amid Regulatory Pressure"},"content":{"rendered":"

Well-known<\/b><\/span> businessman<\/b><\/span> and<\/b><\/span> entrepreneur<\/b><\/span> Kevin<\/span> O\u00e2Leary<\/b><\/span> is<\/b><\/span> the<\/b><\/span> leader<\/b><\/span> of<\/b><\/span> the<\/b><\/span> organization<\/b><\/span> that<\/b><\/span> will<\/b><\/span> purchase<\/b><\/span> TikTok <\/b><\/span>with<\/b><\/span> an<\/b><\/span> initial<\/b><\/span> price<\/b><\/span> of<\/b><\/span> $<\/b><\/span> 20<\/b><\/span> billion<\/b><\/span> and<\/span> $<\/b><\/span> 30<\/b><\/span> billion.<\/b><\/span> The<\/b><\/span> average<\/b><\/span> price<\/b><\/span> is<\/span> a<\/span> price<\/b><\/span> reduction<\/b><\/span> of<\/span> up<\/span> to<\/span> 90%<\/span> from<\/span> the<\/span> company\u2019s <\/b><\/span>previous<\/b><\/span> budget;<\/b><\/span> This<\/b><\/span> reflects<\/b><\/span> regulatory<\/span> issues<\/b><\/span> and<\/span> uncertainty<\/b><\/span> surrounding<\/span> the<\/span> popular<\/span> short<\/span> video<\/b><\/span> sharing<\/b><\/span> platform.<\/b><\/span><\/p>\n

The<\/b><\/span> US<\/b><\/span> House<\/span> of<\/span> Representatives<\/span> recently<\/span> passed<\/span> a<\/span> bill<\/span> forcing<\/b><\/span> TikTok\u2019s<\/span> Chinese<\/span> owner<\/b><\/span> ByteDance<\/b><\/span> to<\/span> divest<\/span> its<\/span> US<\/b><\/span> assets <\/span>within<\/span> six<\/span> months<\/span> or<\/span> face<\/span> sanctions,<\/b><\/span> increasing<\/b><\/span> pressure<\/span> on<\/span> the<\/span> company.<\/span> Although<\/b><\/span> ByteDance<\/span> has<\/span> lobbied<\/span> against<\/span> the<\/span> bill,<\/span>O\u2019Leary<\/b><\/span> believes<\/span> the<\/b><\/span> sale<\/b><\/span> is<\/span> the<\/b><\/span> most<\/b><\/span> likely<\/b><\/span> and<\/b><\/span> estimates<\/b><\/span> the<\/b><\/span> sale<\/b><\/span> will<\/b><\/span> be<\/b><\/span> at<\/span> least<\/span> 50%<\/span> after<\/b><\/span> the<\/span> US<\/b><\/span> elections.<\/b><\/span><\/p>\n

But<\/b><\/span> any<\/span> deal<\/span> could<\/b><\/span> face<\/b><\/span> hurdles,<\/span> including<\/span> uncertainty<\/b><\/span> over<\/b><\/span> whether<\/b><\/span> the<\/b><\/span> Chinese<\/span> government<\/span> would<\/b><\/span> approve<\/b><\/span> ByteDance\u2019s<\/b><\/span>sale<\/b><\/span> of<\/b><\/span> TikTok<\/span> to<\/span> U.S.<\/span> buyers.<\/b><\/span> O\u2019Leary<\/b><\/span> acknowledged<\/b><\/span> that<\/b><\/span> White<\/span> House<\/span> approval<\/span> was<\/b><\/span> needed<\/b><\/span> due<\/span> to<\/span> national<\/span> security implications\u00a0and<\/span> has<\/span> discussed<\/span> the<\/span> issue<\/b><\/span> with<\/span> key<\/span> politicians,<\/b><\/span> including<\/span> Republican<\/span> nominee<\/span> Donald<\/span> Trump<\/span> and<\/span> current<\/b><\/span> President <\/span>Joe<\/span> Biden.<\/b><\/span>
\n<\/b><\/span>
\nThe<\/b><\/span> proposal<\/b><\/span> will<\/b><\/span> be<\/b><\/span> able<\/b><\/span> to<\/span> remove<\/b><\/span> TikTok<\/b><\/span> users\u2019<\/b><\/span> preferences<\/b><\/span> according<\/b><\/span> to<\/b><\/span> the<\/b><\/span> process<\/b><\/span> that<\/b><\/span> is<\/b><\/span> important<\/b><\/span> for<\/b><\/span> its success.<\/span> O\u2019Leary<\/b><\/span> hopes<\/b><\/span> buyers<\/b><\/span> will<\/b><\/span> want<\/b><\/span> to<\/span> recreate<\/span> the<\/b><\/span> algorithms<\/span> using<\/span> the<\/b><\/span> US<\/b><\/span> code,<\/span> thus<\/b><\/span> transforming<\/span> TikTok<\/span> from<\/span> its <\/span>Chinese<\/span> roots<\/span> into<\/b><\/span> a<\/span> local<\/b><\/span> platform.<\/b><\/span><\/p>\n

Despite<\/b><\/span> the<\/span> complexity<\/span> of<\/span> the<\/span> deal,<\/span> O\u2019Leary<\/b><\/span> expressed<\/b><\/span> interest,<\/b><\/span> noting<\/span> negotiations<\/b><\/span> with<\/span> other<\/span> interested<\/span> parties<\/span> and<\/span> plans<\/span> to <\/span>include<\/b><\/span> significant<\/b><\/span> amounts<\/b><\/span> of<\/b><\/span> money.<\/b><\/span> Joined<\/b><\/span> from<\/span> April.<\/b><\/span> Former<\/span> US<\/b><\/span> Treasury<\/b><\/span> Secretary<\/span> Steve<\/span> Mnuchin<\/b><\/span> also<\/span> expressed interest\u00a0in<\/span> pursuing<\/b><\/span> TikTok,<\/span> further<\/span> highlighting<\/b><\/span> the<\/span> potential<\/span> deal.<\/b><\/span><\/p>\n

This<\/b><\/span> is<\/span> the<\/span> hardest<\/b><\/span> thing<\/b><\/span> in<\/span> social<\/span> media,<\/span> and<\/span> I<\/span> learned<\/b><\/span> how<\/b><\/span> to<\/span> create<\/b><\/span> a<\/span> new<\/span> algorithm,\u201d<\/b><\/span> said<\/b><\/span> O-Leary.<\/b><\/span> Despite<\/span> the competition,<\/b><\/span> he<\/span> is<\/b><\/span> still<\/b><\/span> optimistic<\/span> about<\/span> time<\/b><\/span> and<\/b><\/span> the<\/span> huge<\/b><\/span> value<\/span> of<\/span> TikTok,<\/b><\/span> the<\/b><\/span> biggest<\/b><\/span> entertainment<\/span> and<\/span>\u00a0entertainment platform <\/b>in<\/b><\/span> the<\/b><\/span> United<\/b><\/span> States.<\/b><\/span><\/p>\n

TikTok<\/b><\/span> did<\/span> not<\/span> immediately<\/span> respond<\/span> to<\/span> a<\/b><\/span> request<\/b><\/span> for<\/span> advice<\/b><\/span> on<\/span> what<\/b><\/span> to<\/b><\/span> buy.<\/b><\/span> As<\/b><\/span> the<\/span> controversy<\/b><\/span> widens<\/b><\/span> and<\/span> regulatory pressure mount,<\/span> TikTok\u2019s<\/b><\/span> fate<\/span> hangs<\/span> in<\/span> the<\/span> balance<\/b><\/span> as<\/b><\/span> O\u2019<\/b><\/span> Leary<\/b><\/span> and<\/span> his<\/span> team<\/b><\/span> confront<\/b><\/span> the<\/span> advertising<\/b><\/span> challenge<\/b><\/span> personally i<\/b><\/span>t<\/b><\/span> supports.<\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Syndicate Led by O\u2019Leary Ventures Chairman Seeks Bid of $20-30 Billion, Significantly Below Previous Valuation<\/p>\n","protected":false},"author":331,"featured_media":37978,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[363,326],"class_list":["post-38012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-biden","tag-tiktok"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/38012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=38012"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/38012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/37978"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=38012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=38012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=38012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}